Economics for dummies

[BillyStubbsTears]

We've been needing this for years.

Various academic macro-economists have been writing erudite articles about Austerity for years. But they have had bugger-all effect on the man in the street. What's been needed is a clear, simple, stripped down discussion by a world-leading authority on the subject, setting out how economics works and what the problems with debt and Austerity are. This is vital because it's still going to be the key decision in May that will decide how rich we are going to be for the rest of our lives.

So. Step up to the plate Prof Simon Wren-Lewis of Oxford University. He's been blogging about Austerity and misunderstandings about economics for several years. What he's done in the following article is to distill all of these thoughts into a beautifully clear argument. It is required reading for anyone who wants to make an informed decision in May.

http://www.lrb.co.uk/v37/n04/simon-wren-lewis/the-austerity-con

[Glyn_Wigley]

The big problem is people who seem to think economics can be viewed as if it were accountancy. Our local 'expert' being the prime example.

[BillyStubbsTears]

There is a perfectly honourable argument to be had about whether Labour spent or saved too much between 2000-2007. You can debate that in respectful ways that accept differences in poetical outlook.

What is utterly unarguable is the idiocy of macroeconomic policy in the UK, USA and Europe from 2010 to 2012-13 when the Austerity mania took hold. That is what Wren-Lewis's argument is about.

The analogy is this. In 2007/8 we had a massive heart attack. Some people think that the reason was that we didn't take enough exercise in the years before. They may be right. They may not be right. But the simple fact is that when we are still in intensive care, prescribing a massive, intense programme of exercise as the cure would be seen as utter stupidity that would make us more ill, not healthier. The time for exercise is when you're out of intensive care.

Wren-Lewis's article is the clearest exposition if this argument that I've yet seen. He's tearing out his hair that the so-called economics experts in the media (Robert Peston, come on down) seem incapable of justifying their salaries by explaining this in a way that the public can understand. So he's doing it for them in that article.

Someone, somewhere needs to hold up Osborne to account over this every time he tells us that 2015-17 MUST see cuts even greater than the reckless and stupid ones he imposed in 2010-12.

[Dutch Uncle]

Very good read as you say BST 

I note with interest that Prof Wren-Lewis is a Fellow of Merton College, the alma mater of amongst others William of Ockham - so he is clearly continuing the tradition of not overcomplicating matters

Of course there are other Old Mertonians who are unable to keep their stats simple........

[Boomstick]

London review of books is socialist propaganda,
Will billy bullshit please stop quoting from left wing sources please?
It's getting rather pathetic

http://www.propagandistmag.com/2010/12/20/london-review-books-30-years-public-funded-extremism

[Glyn_Wigley]

London review of books is socialist propaganda,
Will billy bullshit please stop quoting from left wing sources please?
It's getting rather pathetic

http://www.propagandistmag.com/2010/12/20/london-review-books-30-years-public-funded-extremism

That's one person's personal view, thus hardly conclusive. Any hard evidence?

[BillyStubbsTears]

Boomstick

Your link complains that the LRB has a track record of anti-Western, anti-Capitalist propaganda.

It may well have. I've no idea. I don't read it as a rule.

The article I posted the link to, however, is written by a highly-respected Oxford professor of macro-economics who has devoted his life to investigating and explaining exactly how the Western capitalist system works. Because he wants it to work better.

Criticise his methodology if you wish. Criticise his track record of accuracy if you wish. Criticise his conclusions if you wish.

Or, instead, do 10 seconds Googling to find a source that confirms your prejudices.

I wonder who could have predicted which approach you would take?

[IC1967]

What a load of leftie drivel. 'Economics for dummies' sums it up. Anyone that believes this drivel is a dummy. More spending when we have already maxed out the nation's credit card is madness. We already have more debt than we can ever hope to pay back. One day the markets will realise this and then we will be well and truly in trouble. Our only hope is to get rid of the budget deficit before the markets cotton on to just how unsustainable our  debt levels are and to gradually start paying off our national debt. We have been living well beyond our means ever since the last Labour government came to power and it has to stop. Why you lefties don't think we should be living within our means is unbelievable.

You lefties are quite happy to pass this debt onto our children. Typical selfish lefties that only think about yourselves and couldn't care less about our children's futures. Each child in the UK is now burdened with over £101,000 of our debt. This has to stop. It is morally indefensible.

http://www.debt-clock.org/

[BobG]

Wonder who started all this deregulation nonsense that led to the world economic collapse Mick?  Come to that, who was it set things up so that a sensible level of income tax is no longer politically possible? You sound like a broken record. Never any evidence. Simply blatherings from an over sized and under resourced gob.

BobG

[IC1967]

Wonder who started all this deregulation nonsense that led to the world economic collapse Mick?  Come to that, who was it set things up so that a sensible level of income tax is no longer politically possible? You sound like a broken record. Never any evidence. Simply blatherings from an over sized and under resourced gob.

BobG

Excuse me. Never any evidence! What are you on about? Did you not see the link I posted? Are you blind?

You accuse me of never providing evidence when it is you that is at fault. My post provides evidence. Yours doesn't. Yours never do. I post links all the time to back up what I say.

[Forum Admin]

Less of the personal attacks please.